Skip to main content

tv   Fast Money Halftime Report  CNBC  February 12, 2013 12:00pm-1:00pm EST

12:00 pm
i'm up next, but now i'm singing the heartburn blues. hold on, prilosec isn't for fast relief. cue up alka-seltzer. it stops heartburn fast. ♪ oh what a relief it is! welcome back to "squawk on the street." facebook with a downgrade. cutting the price target to 22 bucks. analysts saying they upgraded facebook from neutral in november because they believe in the advertising revenues and now stay desktop revenues will peek this year and mobile not enough,
12:01 pm
down 1.4%. >> it's amazing how brief their moment in the spotlight was. the downgrade is to sell. and last night they cut them with market perform with a $27 price target. it's not been a good 18 hours or so for shares of facebook. check apple one last time, if you're just joining us this morning, tim cook had an interesting interview. they do not have a depression era mentality when it comes to the $137 billion on their books in cash. the einhorn proposal he called creative but dismissed it as a silly sideshow and said going to apple stores for him is like prozac when times get tough. that does it for "squawk on the street" and back to ha-- time f halftime back at hq. >> carl, thanks so much.
12:02 pm
welcome to a special edition of the "halftime report" today where some of the biggest companies are presenting today. many are wondering what will get tech stocks going again. the headline, apple ceo tim cook addressing criticism a short time ago keeping $137 billion in cash on the balance sheet. let's listen. >> we do have some cash. it's a privilege to be in this position. last quarter alone the cash flow from operations was over $23 billion. it's an incredible privilege for us to be in a position we can seriously consider returning cash to our shareholders. the management team and board are in very active discussions.
12:03 pm
>> let's welcome in cnbc's jon fortt, with us the next 30 minutes. you were in the room. what did you think? tim cook did address david einhorn directly. >> he did. he had a mixed way and said on the one hand they will listen to what their shareholders have to say and on the other hand the preferred stock board is a sideshow. they wouldn't really do that any way. two things kind of newsy out of this. one was that he talked about emerging markets and the margin profile of apple and said we've seen this before. we're confident margins will get back up because we can manage the supply chain and expect the ipad markets will expand and get bigger and have a halo effect
12:04 pm
and people can buy higher margin products. the other thing with the iphone and emerging markets and will ap dool a cheaper iphone, he said the only thing we will never do is come out with a crappy product. i'm quoting him on crappy. he said people wanted us to do a cheaper mac and we didn't do that and came out with the ipad. and sometimes you don't do what other people want but have other benefits. >> interesting as to david, called it a silly sideshow that they were being sued something tim cook considers good for shareholders. on the margin, he did say ott one point you could be accepting lower margins on a product that were not hardware and we could make it up in other areas. is that tim cook spin? sure. but in some ways easing the
12:05 pm
stock from $705 to $471. >> the overall message seems to be we have this under control, we know what we're doing, haven't been blind-sided and competit competitors getting a jump on us. we think we can get them back p up, both through lowering costs in the supply chain and halo effect of buying the iphone and higher margin products. >> apple's investment officer will break it down for the next entire hour. did you expect anything earth moving from tim cook today? people do want them to put this cash to work. you're a shareholder. don't you want them to do something with the money? >> i think they told you they will do something with the money. if you read the request to i
12:06 pm
ho einhorn, request for preferred dividend we generated over the last quarter alone over $20 billion in cash and will increase that. steve jobs passed away in october over a year ago and five months later tim cook the new ceo started a dividend apple resisted under steve jobs. a year later, shareholder meeting coming up february 27th, the earliest you should expect anything and told you they will move. >> they have a history of making comments like this and acting on the cash. tim cook did not shy away year ago and it was matter of weeks they announced the dividend. you own a large number of technology stocks. tech is the worst performing large sector, worst performing space in the s&p year-to-date. why is that? >> it really should be. think about this last year, what have you seen happen?
12:07 pm
apple missed three quarters of revenues in a row. intel pre-announced in the third quarter. pc units have declined for the first time since 2001-2002. the tech sector got dragged up last year with the rest of the market. a lot of these companies haven't put up good fundamental numbers and should be lagging and wa waiting for am and resurgence instead of new winners coming up. >> here's the haead scratcher. apple was the worst performer and i look for standouts, it's yahoo! blackberry and handicap. li -a -and hp, a loser's rally. >> why do you think apple is doing much worse? >> from hewletthewlett, knockof
12:08 pm
dell and taking transaction. you say who will be benefit from dell being taken private? obviously hewlett. >> i thought you would say michael dell. >> the first thing is they lay on a huge amount of debt and restructure the company. hewlett will take advantage of that. and they buy printer engines. that drops costs a lot. the fact the euro moved up helps the european sales. if you value them like dell is valued, you can end up with a share price in low 20s. blackber blackberry loser's valley, i think like palm that just got taken out. >> and pete and mike and steven-wise will be holding down the fort in new jersey the next hour as well. dan raises an interesting
12:09 pm
question we sat here and expected these large cap technology companies to do better. maybe the better bets are elsewhere, you need to be especially nimble, a better stock picker if you're investing in tech. >> i agree, other than qualcomm off today because of a downgrade, it is name specific. if you were in apple the last couple of weeks or months or more you're not very happy and dan says blackberry looks like it's temporary but blackberry has given themselves an opportunity to get back into the game and nokia doing the same thing with expansion at china mobile is a big story. it's very specific, looking for names and where we have seen performance has been in the names we have given up for dead maybe have enough product line coming out right now maybe they have a chance that they catch to
12:10 pm
apple or samsung but at least more come ppetitive than severa months ago. >> are you still a believe in big cap tech? >> it has not changed. it has commodity based companies, the semis and pc manufacturers. the other side are cutting edge technology stocks you buy for a wave. i think jpmorgan downgrade was very flawed. i don't see the comparison between blackberry and palm. blackberry has an installed base of almost 80 million people. palm had no installed base. blackberry has a huge corporate installed base home depot i said and have new technology. we talked about that off and on and i disagree emphatically about that comparison. >> dan, i'm not sure if you can
12:11 pm
hear these guys. stev steven weiss is making the point you can't make a comparison between blackberry and palm, the installed base is defendantiffe. why are you so skeptical and i know research would lead you to be skeptical about what research in motion now has done. >> i didn't hear what steve said. here has the simple view. you're buying a phone not to make a phone cull, to run applications. they will develop on the most profitable platforms. number one, apple, number two, google. if they have any money left over, they might focus on microsoft because they're paying them so much money to develop. rim doesn't have that. i think somebody may acquire them like palm got acquired. there's not enough to develop
12:12 pm
the applications, the construction crux of the problem. 95 the new blackberry in my hand, a good device. they launched with 70,000 apps more than any other mobile device launched with. 97 or 98% of all laps have less than twenty downloads. you're talking the 20%, "wall street journal" and cnbc, they will go to all the devices and won't leave anybody out particularly a heavy corporate user like blackberry devices. >> there really is no comparison when you talk about the number of an apps made for the iphone, 300,000 or thereabouts is the number tim cook threw out today. it's daunting to think anybody else can compete with that, especially somebody at the lower end of the food chain like a
12:13 pm
blackberry. >> true. but 97 or 98% of those people don't make any money. you have 20 flashlight apps or 100. you only need one. you look at the key apps they will make their way into the android. the windows phone is a phenomenal device. i only played around with that this weekend. they'll get apps for sure. >> here's the thing to worry about blackberry. that subscriber number from 80 million could come down significantly in the next quarter. we're looking at two years since the iphone 4 came out and android came on strong and the 10 devices won't bring on subscribers and will be the headline next quarter and we need to prepare people for that. coming up on the half, not trading just technology. barclay shooting higher and coke
12:14 pm
stumbling and plays on the other big movers as well. as ebay's ceo delivers at the tech conference, we want to know who will win the mobile commerce war. hodo traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.
12:15 pm
[ male announcer ] with citibank it's easy for jay to deposit checks from anywhere. [ wind howling ] easier than actually going to the bank. mobile check deposit. easier banking.
12:16 pm
standard at citibank. okay. [ male announcer ] with citibank's popmoney, dan can easily send money by email right from his citibank account. nice job ben. [ male announcer ] next up, the gutters. citibank popmoney. easier banking. standard at citibank.
12:17 pm
welcome back to "halftime report." qualcomm slipping down. they point out two reasons. it jumped 60% since they upgrayeded upgrayeded -- upgraded in 2007 and first time purchasers will go down next year and down about 2.2% right now. scott, back to you. >> thanks so much. dan owns this name and steven we weiss owns the name and likes it. that's not what tim cook said. >> you have to define peeking, four years ago, growing at 40 400%-year over-year. you can define it any way you want. you sold 700 million smartphones and 1.2 billion total phones.
12:18 pm
i don't know how that's peeking. you look at emerging markets, that's over 80% of subscribers out there. the penetration for that market is like 15% for smartphones. the developed markets like the u.s., over 60% of subscribers own smartphones. you have a long way to go before you have a problem. >> don't forget the tablet market. qualcomm is looking for 650 million tablets in 2016. you look at their presentation, growth is really going strong. maybe it won't be 50 or 200% but more than enough strong. then, there is the upgrade cycle. that's a ludicrous report by jpmorga jpmorgan. >> a quick comment from jon fortt, that comment from the analyst that downgraded qualcomm doesn't jive with what we heard by tim cook by any stretch of the imagination where he thinks the smartphone market is going.
12:19 pm
>> qualcomm announced they're coming out with a lower end chip to address emerging markets up to this point they have been weak and important to get that off the grown and emerging markets like china coming through with networks and qualcomm has a greater growth to tackle that than even apple. barclays is trading higher today after announcing a restructuring plan to cut $2.7 billion in annual cost. the stock is getting a huge bump, 8.5%. >> huge mover on barclays. they cut the bonuses they're paying to investment bankers an staff across the board immensely. what will come across here is moral going lower in barclays. a nice pop going higher and i'd be a seller of the stock.
12:20 pm
netflix announcing a new collaboration with dreamworks. what do you say? >> here's what's interesting, earlier in the day before the market opened it was down because sony announced a deal with starz to extend their agreement into 2020. netflix in their one upmanship says we have a better deal here. we still don't know what the ultimate cost is but momentum in the company is very strong. i'm not there and regard it an as very expensive and momentum play at this point. >> dan niles tells me he's short that name. >> recently. >> not looking so good recently. >> that was after it had already moved up a bunch. the way i think about netflix, what was just mentioned, there's a big fight for content out there. you're having to pay a lot of money to get that content. netflix has moved up 40, 50%. i looked at that, nothing has
12:21 pm
really changed. the deal you're seeing announced this morning speaks to the fact they spent a lot of money to get content and get people to watch your program. the valuation is the issue and a lot of this move up is short-covering. >> the bull move is didn't reed hastings prove to people like you they're adding enough subscribers to pay for all the content they're spending so much money on? >> you have to remember, this is one quarter. it is one good quarter. how did the stock get to where it was in the first place? had problem getting enough subscribers. one is noise and one is trend. there's competitors like amazon and apple tv and hulu. >> look at that move, 128% over the past three months. finally coca-cola beat iing earnings and falling short on revenue, probably why the stock is off nearly 3% today, wouldn't
12:22 pm
you say? >> it certainly is. and you look at china and the european sales and weakness not that it's not expected but maybe a little more weakness than folks anticipated. i actually prefer pepsi over coke right now if you want to do the challenge and like the yield in pepsi as well. at the goldman sachs internet conference, ebay ceo donahoe is wrap ugh up. this is one of your largest holdings. >> ebay, their growth is actually accelerating. >> you look at the number of users using the market platform that's ebb sk accelerating. look at the number of users on payment platform accelerating and revenue accelerating qe-3 to q4. the nice thing they're doing i like the name, they're enabling a lot of merchants to get onto the internet and helping them
12:23 pm
with that process. if you believe it the papal offline opportunity could be big in the future. i'm not as big a believer on that but could happen in the future. >> what do you see right now at ebay? >> i think when it comes to payments, they're doing interesting things with offline. i'm concerned about the traction. i use papal and the reason to lay out papal opposed to credit card hasn't quite connected and haven't heard a lot about them their square competitor. i haven't seen the momentum in gsi. you hope them positioning that as arms dealer for retailers versus amazon. i wonder if there's something they can or should do to get that moving compared to what marketplace is doing. >> i think with gsi you're in early stages picking up
12:24 pm
traction. you brought up amazon. with amazon that growth looking at it a year ago picking up 50% year-over-year. and it dropped 20% in june and september. e pay picked up 16 to 18%. look at valuations, paying 90 times for amazon where the growth is slowing, but paying 20 times for ebay where the growth is accelerating and something is out of whack and why i have a negative position. >> is too much of the ebay story centered around papal? does donahoe have to figure out a way to get the message out we're more than this payments arm that seems to be leading the way? i ask you that question because i get out of a taxi at the hotel, i pay with by square and you pay with your credit card information and get e-mail from square. that would be an interesting competitor to papal in the future. >> that's the part of the story
12:25 pm
they've the same concern as jon does. i like the marketplace story and getting other merchants online. this whole offline thing i have questions for him when he comes on. if you have to already show a credit card, what will make you pull out your papal card? the value proposition interest clear. >> that's tonight on "fast money" at 5:00 eastern live in san francisco. coming up, which two lagging sectors are about to reverse course? dan niles tells us where he's looking and the next tech thing for venture capitalists. bill gurley will be here live.
12:26 pm
with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. more "likes." more tweets. so, beginning today, my son brock and his whole team will be our new senior social media strategists. any questions? since we make radiator valves
12:27 pm
wouldn't it be better if we just let fedex help us to expand to new markets? hmm gotta admit that's better than a few "likes." i don't have the door code. who's that? he won a contest online to be ceo for the day. how am i supposed to run a business here without an office?! [ male announcer ] fast, reliable deliveries worldwide. fedex.
12:28 pm
[ male announcer ] fast, reliable deliveries worldwide. how sharp is your business security?o! can it help protect your people and property, while keeping out threats to your operations? it's not working! yes it is. welcome to tyco integrated security. with world-class monitoring centers and thousands of qualified technicians. we've got a personal passion to help your business run safer, smarter, and sharper. we are tyco integrated security. and we are sharper.
12:29 pm
welcome back to the "halftime report." i'm josh. news on dell. we want to bring you specifically t. rowe price one of the largest share hold esand saying it will not support dell's leveraged buyout offer. we do not believe the quote reflects the buyout of dell and do not support the offer from t. rowe price officer rogers. and other t. rowe price officers voice opposition to this. scott, i know you've been all over this one. >> as have you, josh. thanks. you have southeastern, the number one independent shareholder saying no. and t. rowe saying no and rich pizano, down the list a little
12:30 pm
bit saying no. >> originally when the stock was announced at $13.65 buyout why would i see so much activity on the 14 strike down the chain? the reason because a lot of those anticipating and some that were anticipating would see a higher bid that may come along and a lot of folks are not very happy about this price level. you look at the april 14 call, over 100,000 in open interest. there was very little open interest a week or see ago. look at august fun 14th and aug 15th call and a lot of people speculating a deal won't get done at these prices and have to be a sweetened bid. >> this will surprise you. one of the people mentioned opposing the deal. what's your concern? >> i'm surprised you didn't give your attention to all three of them. >> i like to devote my attention
12:31 pm
one at a time or they fight among themselves. i said, aren't you concern the stock goes down to 8 or $9. they said not at all. we looked at the fundamentals, people are aware of it now and i think it can get to the $20 level without a deal over time. >> scott, i'm sorry, i think what pete was saying about the options, people speculating michael dell will try to apiece more people. a lot of work went into this deal when they made the offer originally, whether he went to 15 or 16 or 17, it's still below what a lot of people want for the stock. i don't think they will raise it. this is a business slowing down and i think michael dell put his bid in and will get the company at that level. >> dan is not agreeing. >> you look at the business dell is in, in the pc industry. that's a huge wake. last year was the first year pc units declined since the tech
12:32 pm
bubble burst. tablets taking out the low end and smartphones as well. dell is in a tough spot. to sit there and say the stock could go up to $20, i would argue it could go down to $5 before it goes to $20. >> they made acquisitions, $8 a share, these acquisitions cost. they have not written any down. if they're less valuable than they paid for it, they have not written any down. >> that argument doesn't make any sense. >> hold on. i'm not down. >> they have one of the biggest enterprise businesses out there. everybody knows pcs are falling off a cliff. as you mentioned, it was the first down year but potentially in a major spend cycle by corporate america. guess what, i wouldn't be happy sitting at my desk just working on a tablet. >> true as all that might be, these guys risk pulling a jerry
12:33 pm
yang. we could have a reverse yahoo! situation where microsoft walked away at a certain point and that was the end of the story. that's the risk is a reverse yahoo!. i think i just coined a new phrase, reverse yahoo!. >> yes. i think we will have to take ownership of that and use it on the show. and telecom and semis. why are things going to turn around here, dan? >> if you look at telecom, you have to look at the history of the space. if you go back to the fourth quarter of 2011, the thing that happened was at&t mobile deal got broken apart by the u.s. government. there was a freeze in spending. we spent a good portion of the segment talking about iphones and increase in tablets and smartphones, how that benefits. people are forgetting mobile traffic is doubling every year through the internet and having a 20% increase in traffic.
12:34 pm
deutche telecom saying they will spend a lot of money to compete with at&t and horizon and then sprint is bought and they will spend $4 billion next year with the money given to them by softbank. and you're starting an arms race where it used to be at&t and verizon hanging out and spending levels are starting to rise and these stocks have been terrible. >> steve, from a telecom standpoint, you like some of these names? >> i own horizon and big t. they're getting irrational, making more money and changed pricing and subsidies for phones, cutting back the subsidies in terms of making you spend more to get the phones. i think they're very we well-positioned and people are so negative on them i think they do well. my only concern is i'm very
12:35 pm
bearish on the long bond. as rates go higher you may see some money hiding there come out. >> as a guy managing money, you're making a call semiconductors, if we switch to that face for a second have bottom. >> if we were to believe that and the folks watching this show believe what you have to say and put money to work, we're the best place to do just that. >> number one, i'm recommending cisco, juniper, those companies, not at&t and verizon. those guys benefit. making that clear. and you need to associate with companies not associated with the pc space. when you think about that, companies that supply broad-based components on semiconductors is one of the top largest semiconductors in the world. >> eme is the ticker symbol?
12:36 pm
yes. >> look at gdp, up 4% to 2010 all the way to now. >> xpi is another one on the list. it had quite a nice performance at least in the very near term many coming up on halftime, which is the best buy? we will debate it so you can trade it. and benchmark's bilateral girly, one of the top venture capital firms. and thanks for spending the first half hour of our program as well as we continue to san francisco after this break. ♪ ♪ [ cows moo ] [ sizzling ] more rain... [ thunder rumbles ] ♪ [ male announcer ] when the world moves... futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with papermoney to test-drive the market.
12:37 pm
♪ all on thinkorswim. from td ameritrade. this is $100,000. we asked total strangers to watch it for us. thank you so much. i appreciate it. i'll be right back. they didn't take a dime. how much in fees does your bank take to watch your money? if your bank takes more money than a stranger, you need an ally.
12:38 pm
ally bank. your money needs an ally.
12:39 pm
welcome back to "halftime report" with tech today disappointing. financials are higher with names like blackrock, citi group, jpmorgan and american express with multi-year highs and goldman sachs 52 week high, rallies including community bank and those trading with multi-year highs. back to you.
12:40 pm
>> josh, thanks. as good a time as any to mention i will be speaking to goldman ceo blankfein at 2:00. pete, trade the financials here, not to be overlooked today. >> they shouldn't be overlooked. we talk about them being the backbone of these rallies and the financial sector, whether goldman sachs one day, yesterday, wells fargo had the upgrade yesterday and bank america and city are your players. they continue to explode to the upside. you look at the stock volume, you see a lot of volume in bank of america and options, same thing. the 12 strike calls continue to be attacked. now that we're through, we look to the upside and volume continues to be in the financials and banks. >> scott, i don't think it's coincidence we went from 1 to 2% in the 10 year, and i own these -- >> good for you. >> and they will make net
12:41 pm
interest on the margins and a trade that will continue through the rest of the year. >> i think goldman is a great way to play. great movements in weekly options and everyday the stock moving higher and hitting new highs. bank of america also the news that could be coming out with bank of america that the company could be looking to increase their dividend or stock repurchase that would get it through a new high. >> niles, you have a big position in bank banof america. >> i agree with that. it tells you how many shares you can buy back and if you increase your dividend, that will happen. as steve pointed out, banks make money lending. with one year below 2% you can't make money lending, and it's trading below book value just to get back there it has to go up 20, 25%.
12:42 pm
we're still live from the goldman sachs technology conference in san francisco. from major builder to home builder, pops and drops on half-time. be more specific. i see the aflac duck. i see the aflac duck out of work and not making any money. i see him moving in with his parents and selling bootleg dvds out of the back of a van. dude, that's your life. remember, aflac will give him cash to help cover his rent, car payments and keep everything as normal as possible. i see lunch. [ monitor beeping ] let's move on. [ male announcer ] find out what a hospital stay could really cost you at aflac.com.
12:43 pm
[ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. this is the pursuit of perfection. what are you doing?
12:44 pm
work? work. cdw configured these lenovo thinkpad ultrabooks with intel core i7 processors. so, we can work anywhere. anywhere? sure - on the beach, in the woods, at the lake. what about on the green? let's not get ahead of ourselves. oh!!! i took something for my sinuses, but i still have this cough. [ male announcer ] a lot of sinus products don't treat cough. they don't? [ male announcer ] nope, but alka seltzer plus severe sinus does it treats your worst sinus symptoms, plus that annoying cough. [ breathes deeply ] ♪ oh, what a relief it is! [ angry gibberish ]
12:45 pm
hey there, coming up on "power lunch," whatever happened to madoff's money? more than four years after the scandal, a team of lawyers are on the hunt. cliff coverage. from snake to snake eyes. as the chinese new year comes upon us, we go live to sin city to see what they're doing to attract high rollers from china. don't miss this. "sports illustrated" cover girl kate upton in the studio and will tell us what it's like to be the only one to grease the cover of the swimsuit edition two years ago. let me guess, scott, i bet the guys managed to stick around for the next hour to get a picture with kate upton. >> i was going to say, yeah, but we have bill gurley. take that. take that! as a matter of fact, we look forward to seeing you the top of the hour and kate upton as well. linked in is up more than 40% the past year and facebook up
12:46 pm
almost 40%. which is a better buy right now? steve weiss is our linked in bull and bill our facebook bull. tell us which you would buy? ? if i had to buy one it would be linked in. here's the reason. we know the strategy and success they're having. facebook is still in transition and it's more of a faddish proposition for folks on the site. >> the stock is down over 15% the last two weeks. it got a downgrade with a $22 price target. the reason was mobile add growth is not enough. that was a knock on the stock that it wasn't growing mobile enough. there's too much negative news on facebook here. if you had to pick a stock that will go up 50% in 2013, would you pick linkelinkedin 250 or
12:47 pm
facebook the $40 range. >> what's the dollar amount? >> he was just showing it. >> i'm doing the math for you. i think facebook is a better move than linkedin. >> we'll save you guys and bring in benchmark's bill gurley to settle the argument. you heard these guys going toe-to-toe whether facebook was a better bet or linkedin. full disclosure, you have a connection to facebook by virtue of instagram. front and center, can you make the argument linked in has it figured it out it being mobile better than facebook at this current stage? ? i don't think anything of linkedin is monetized by mobile. it's seamless for them and different for facebook. both companies have something very unique. they have a global network effect that crosses borders. very few businesses have a
12:48 pm
global network effect. it's a pseudomonopoly. i was always taught on my days on wall street you're you never short a leader. >> i'm glad bill brought this up. they figured out global and mobile. facebook global obviously but mobile is the question. >> that's not really the question. as bill just pointed out, facebook has a billion users. they didn't really focus on making money off those users until after they came public. they just started mobile a few quarters ago, just got into gifting and got them into e-commerce. we know how big that can be with amazon and started social search and we know how big that is thanks to google. you won't get off facebook. if your friends are on facebook, you're staying there. and it has an ad revenue stream
12:49 pm
like google and amazon in the early days. >> you heard them make their cases as well. if you had to pick between one stock, which one would it be? >> i'd pick facebook and because i actually own facebook for all the reasons the guys highlighted. i do see potential for facebook. you want to look at crazy things, obviously they both look extreme. i think in front of them now facebook has a much better opportunity to potentially double, to merv's point. >> we mentioned bill's firm has brought hottest tech names public the last several years. want to know what companies are in the portfolio now we should be watching closer than ever. which of the companies are you most excited about probably folks in this show have had experience using or heard of? >> two they should be using if they haven't, next door and oober. next door is a social network
12:50 pm
for your local community. they hit 8,000 neighborhoods in the u.s. in all 50 states and announced a new financing, a peer of ours, and david has taken a board seat with the company and everything we're seeing is accelerating. we believe the local community where your neighbors are talking to each other is a specific social opportunity from facebook. >> uber, for those that don't know, it's a car service. >> it's an unbelievably magical service. a smartphone in a consumer's hand and smartphone in a driver's hand and algorithm that helps route all those things. when it hits scale, it hit scale in san francisco, pickup time is less than two minutes and changes behavior in the market. >> the time frame for taking those types of companyies publi is what, if not specific or exact, what's your train of
12:51 pm
thought? >> in the 1990s, it could be as low as three years and got extended to 10 or 11 as we went through the dry summer of the 2000s. i think today because of the way viral is playing on the internet you're seeing companies hit revenue growth rates much higher than we have in the past and i think we will see that window come in. coming up. dan niles and you tweet it we trade it, and playing on a hand full of stocks you asked for on twitter coming up next. ♪ [ male announcer ] staples has always made getting office supplies easy. ♪ another laptop? don't ask. disappear! abracadabra! alakazam! [ male announcer ] and now we're making it easier to get everything for your small business. and for my greatest trick! enough! [ male announcer ] because whatever you need, we'll have it or find it, and get it to you fast.
12:52 pm
staples. that was easy.
12:53 pm
12:54 pm
>> when you the viewers ask we deliver from trades on stock that lit up my twitter feed. deckers, tbt, regions financial. first up is deckers. murphy, what's the trade? >> the trade in deckers, you can start to phase into this thing, start to get long here. it's gotten annihilated below 30, back in the $40 range now and you can start to build a position here in deck. >> all right. how pout tbt? >> i'm long tbf, the slow version of tbt. that's twice the action 20-year bond on the short side. the problem with those ultra-etfs, once they go down, you have to cover some ground.
12:55 pm
the ten-year, 2 1/2 at least, maybe 3% this year. >> regions financial, pete, how do you trade this one? >> i like these regions banks like the rest of the guys, like the rest of the financials now. i like regions bank, a two-week run, two highs across the board. up side, huntington, regions financial, across the board right now, these names will continue to work as we continue to show some strength now in the housing market. >> all right. this segment, of course, called you ask for it on twitter, which is a perfect segue back to talk about twitter. benchmark has an investment. everybody wants to know when twitter is going to go public, whether they are the apple of another company's eye, so to speak. what can you tell us? >> it wouldn't be my place to answer that question directly. you'd have to ask them that. i will tell you this.
12:56 pm
the monetization on twitter is going extremely well. adam bane who runs the sales group has done a bangup job. we talked earlier about how facebook was a user proposition. they brought value on later for monetization. that's happened later in twitter. that's working extremely well. they built out team members they need to be ready for something like that. so i feel like if you just look at the company's progression, they are making progress in the ways you want to see that could lead to something like that. >> okay. fair enough. on google, how do you view what's happened in the stock of late, whether you believe money has come out of apple and led in part though google's -- look at that move, $785. you know about the outperformance it has had against apple what do you make of it? >> both of these stocks look extremely cheap based on traditional value metrics. people are intimidated by the large market cap with both of them and they kind of feel like there's this problem, could it be too large to have a return above it. here is what my comments would
12:57 pm
be about google. android is killing it. the momentum we're seeing in portfolio companies around android are incredible. the optionality created by having control of the dominant mobile os as we go forward is just amazing. it's really hard to put a number on what you should value that optionality, but it is definitely there. i think that's what people are becoming aware of and that's why the stock is moving. >> dan. >> i look at the 2011 them, google has done a great job obviously. don't forget, they just bought motorola business not that long ago, roughly 20% of revenues. we personally don't like it at this level. i find it also interesting the chairman is selling $2 billion worth of his stock. so if he doesn't want to sell it, i'm not sure why i want to. >> that's certainly a debate in the market. >> i look at it and go a hot of their issues to me, going down year over year, that's a problem.
12:58 pm
we are long apple and short google at this level. >> dan, thanks for sitting in with us. bill, good to see you. >> good to see you. >> look forward to having you back on "halftime" sometime soon. final trades up next. at farmers, we make you smarter about insurance.
12:59 pm
because what you don't know can hurt you. what if you didn't know that weeping willows have invasive roots? what if you didn't know that a trampoline... could affect your liability? and what if you didn't know that most cars... get broken into when the weather warms up? here, buddy. the more you know, the better you can plan for what's ahead. get smarter about your insurance. ♪ we are farmers bum - pa -dum, bum - bum - bum - bum ♪ today is gonna be an important day for us. you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine.

17 Views

info Stream Only

Uploaded by TV Archive on